Research Information System
Thesis Type: Postgraduate
Institution Of The Thesis: Eskisehir Osmangazi University, SOSYAL BİLİMLER ENSTİTÜSÜ, Turkey
Approval Date: 2017
Thesis Language: Turkish
Student: ONUR ERCAN
Supervisor: Esin Kılıç
Abstract:
One of the most important obstacles to economic development
is the high and persistent unemployment rates experienced in the regions. This
is the basis of many problems in the economy. The main focus point in
struggling unemployment is to create new jobs and this depends on new
productive investments. However, when the policies are combined with the
purpose of eliminating discrepancy of regional socio-economics development,
these policies in reducing unemployment are not only enough to provide new
investments but these investments also need to be directed toward regions.
Besides, as long as the businesses which make production under their potentials
are active in exporting with the new investment, it is going to be able to
bring with them which they increase their production and need more labor in
order to supply with their production increasing thanks to the wider market
opportunity fulfilled by exporting. In this context, it is important to
research the theoretical and empirical relationship between trade openness and
unemployment at the regional level. In this study, by using annual data between
2004-2014, the relationship between trade openness and unemployment is going to
be examined for level 2 regions (26 regions) by using panel data analysis
method determined by NUTS which has been propounded by Turkey during adaptation
process to socioeconomic policies of EU. In econometric analysis, two different
trade openness criteria were used as the nominal and real trade openness index.
As a result of this analysis, it was determined that there is a negative
relationship between the related trade openness indices and unemployment. In
addition, according to the two-stage Arellano-Bond linear dynamic estimation
results, a one-percentage point increase in the nominal trade openness index
reduced the unemployment rate by 0.09 percentage points, while a one-percentage
point increase in the real trade openness index reduced the unemployment rate
by 0.04 percentage points. As a result of Dumitrescu Hurlin panel causality
test, it was determined that there is a bi-directional causality relationship
between both the nominal and real trade openness index and unemployment. From
these results, it can be seen that by increasing the share of foreign trade
volume of regions that reducing unemployment rates can be used as a policy tool
to reduce regional disparities.